Data Shows Bitcoin HODLing Has Reached A New High

May 24, 2023 5:37 pm Comments

According to recent data that was released by Glassnode, more BTC than ever before is being held by investors which is quite a milestone.

This indicates that Bitcoin may be in a very bullish position because around 68% of BTC has been held for at least a year.

When this happens, this means that there is not much selling while there is still very consistent buying in the market which will drive the price up.

Other data also shows that 55% of Bitcoin has been held for at least two years and 40% for three years which are all impressive stats.

Majority of other financial assets have not experienced such strong HODLing which means that the fundamentals for BTC and crypto are extremely strong.

CoinDesk reports:

Sean Farrell, head of digital assets research at FundStrat, said that being a long-term holder has tended to get more popular over time. The exception is when markets get frothy and investors who bought dips sell their older coins to eager buyers.

“The trend is bullish insofar it means that higher prices are ahead in this cycle and any reticence to sell from current HODLers could result in a mini-supply squeeze,” said Farrell.

He added that looking at long-term holder supply metrics is not necessarily useful for short-term price signals.

Long-Term-Holder Supply, which Glassnode deems as coins held for longer than 155 days, has also seen a new all-time high — reaching 14.46 million bitcoin. “This reflects coins acquired immediately after the FTX failure maturing into long term holder status,” said the report.

As for who is actually holding on to the asset, there is not too much information, but many believe that institutional investors make up a large portion of that data.

After all, many are starting to see BTC and other digital assets as an attractive hedge to fiat currencies that may experience inflation.

The next Bitcoin halving event is also coming up soon so this provides an even greater incentive for investors to continue to hold on to their assets.

It is expected that this high HODLing behavior will continue to persist which may be one of the major reasons for the next bull run.

AMBCrypto concludes:

Investors’ lack of willingness to sell was demonstrated by BTC’s growing dormant supply. The percentage of supply held for longer than a year climbed to record highs. Most age bands recorded an uptick in hodling activity.

This behavior was also seen in Long-Term Holder Supply, or BTC held for over 155 days, which hit a new all-time high of 14.46 million.

Interestingly, the hodling narrative grew despite BTC accumulating massive gains in 2023, nearly 64% on a year-to-date (YTD) basis.

Furthermore, the Bitcoin Liveliness metric. which compares hodling and spending patterns, plunged to its lowest level since December 2020. This implied that holding was the dominant narrative in the market at the time of writing.

Join the conversation!

We have no tolerance for comments containing violence, racism, profanity, vulgarity, doxing, or discourteous behavior. If a comment is spam, instead of replying to it please click the icon below and to the right of that comment. Thank you for partnering with us to maintain fruitful conversation.